Insiders tend to be value investors. If they’re buying company stock, it’s usually because they believe the stock is undervalued.
Here, we are going to highlight insider buying at Roper Technologies Inc (ROP:US). Roper Technologies has a portfolio of over 40 businesses that are market leaders in their fields. The companies specialize in the design and development of software and technology-related products. It’s listed on the New York Stock Exchange and currently has a market capitalization of approximately $46.08 billion.
Insider Buying at Roper Technologies
Our insider transaction data shows that on November 4, a director of Roper Technologies, Richard Wallman, purchased 1,000 ROP shares at a price of $390 per share. This cost the insider just under $400,000.
Experienced Finance Specialist
This insider buying is noteworthy for two reasons.
Firstly, Mr. Wallman was previously CFO of industrial giant Honeywell International Inc and its predecessor AlliedSignal for a total of eight years. Like Roper Technologies, it consists of a number of different businesses. So, he has the experience to accurately value a large company with many different businesses within it.
Secondly, our insider transaction data shows that Mr. Wallman has bought company stock twice since the middle of last year. In total, he has spent close to $1.3 million on company stock. This suggests that he strongly believes that Roper Technologies shares are a good investment.
Impressive Q3 Results
Roper Technologies produced an excellent set of Q3 results.
The company posted adjusted revenue for Q3 of $1.35 billion, 10% higher than a year before. Organic revenue jumped 10% as well.
Meanwhile, the adjusted EBITDA figure moved up by 12% versus last year with the EBITDA margin climbing 80 basis points to 41.10%. Adjusted cash flow was 12% higher at $376 million.
On the back of the good quarter the company was able to raise guidance. Diluted EPS guidance for the full year moved up to a range of $14.09 to $14.13. Previous guidance was for between $13.46 and $13.62.
“Roper’s enhanced portfolio delivered outstanding third quarter results. We are increasing our guidance for the year, driven by the combination of excellent third quarter results, continued strong demand for our niche software and product solutions, and the addition of Frontline Education,” said Neil Hunn, Roper Technologies’ President and CEO.
Given these Q3 results, we are of the opinion that the recent insider buying at Roper Technologies is a bullish development.